Duolingo's Q1 Preview: Revenue Growth Slows to 25% While Analyst Price Target Falls Below Share Price

TL;DR: Duolingo’s quarterly revenue is projected to rise 25.1% year‑over‑year, down from 37.7% a year ago. The stock has gained 13.3% in the last month, yet the average analyst price target of $104.97 remains below the current share price of $112.61.

Duolingo will announce its first‑quarter results after the market closes on Monday. The language‑learning app reported $282.9 million in revenue last quarter, a 35% increase year‑over‑year that topped analyst forecasts. Despite the beat, the company’s full‑year revenue and EBITDA guidance fell short of expectations, and its user base reached 133.1 million, up 14.1% from a year ago.

Analysts now model 25.1% year‑over‑year revenue growth for the upcoming quarter, compared with 37.7% growth in the same period last year. Over the past month Duolingo’s share price has climbed 13.3%, but the consensus price target stands at $104.97, which is below the current trading level of $112.61. Peer companies Roku and Coursera have already posted Q1 results, with Roku posting 22.4% revenue growth and Coursera posting 9.1% growth.

The slowdown in projected growth reflects a tougher comparison base and possibly softer demand for language‑learning subscriptions. A price target below the market price suggests analysts see limited upside from current levels, even after the recent share‑price rally. Investors will watch whether Duolingo can exceed the lowered estimates and provide upward revisions to full‑year guidance.

All eyes will be on Duolingo’s earnings release Monday after hours for the actual revenue figure, user count update, and any commentary on future growth initiatives.